Withouta lot of experience and preparationthe traderwill not be able towin this game of trading.

We must have a strategy in place for all trading situations, that we willing to play andmust be able to make decisionsabout our trading oftenwithin a matter of 2 – 3 seconds, if not sooner.

It is possible only with a predefined strategy, a lot of preparation and focus during trading hours.

To demonstrate the reliance on the predictor system we present two process examples, that we usein our everyday trading.

The following flowchartisbasically a decision mechanism about overnighttrading.

It is heavily reliant on the predictor system.

We marked those areas, where we rely on the predictor data with green colors.

In this casethe completely mechanical decisionis made on the predictor output data.

Itis the conservative version, aswe open overnight position only IfBoth the Daily predictor and the Omega predictor points into the same direction.(Less conservative strategy is to open the positionwithout waiting for the Omega – prediction results sometime between 3.30 – 4.00 PM ET, andIf the Omega prediction points to different direction than either close part or all of that position, depending on market conditions.)

Execution of this process / strategy needslittle experience.

The next example is a decision-making processduringintraday trading, assuming that we are intuitive Day-Traders:

Itis much less dependent on the predictor system, but ideallyrequires a lot of Day-Trading experience to be consistentlyprofitable.

We marked the predictor – relatedsegments of this process with green colors.

The intuitive Day-Trader canuse the predictor system toalign his / her Day trades onlyin the direction of the predictor data or canuse it to adjust /. Modify his / her trading size, depending onthe direction of the market (Using increased size in case the market direction is aligned with thepredicted direction.)

Warning!Just because we have agreat predictor system,the first priority in our Day-Trading decision making process isthe actual data coming from the Real – Time market behavior, andwe must use the predictor data with a bit less priority / weight in our decision making process. (Sometimes we make exception only during the first 10 – 60 minutes of the market day, when we still do not have enough information tojudge marketdirection potentials with high reliability.)

We marked three areas in this flowchart with yellow colors.

Those that arerequire a lot of attention, anda lot of market / trading experience.

These areas, marked with yellow color makesthe differences between the newbie, the novice trader and the real pro trader. The other areas ofthis flowchartrepresent mechanicalprocedures, thatmost traders can define and execute correctly.

There aremany market shifts a Day-trader might encounter during the day.

As the day unfolds, a trending market might shift to a range market or a range market might shift to a trending market oran up-trending / down-trending market might completelyreverse to a down-trending / up-trending market, ahigh volatility market might shift to a low volatility market…

For this reasonwe must go back to the top and reassess the market condition just before we make our trades.

A bad example is the following:Assume, that a trader correctly identifies a range market, but do not initiate trades, as theprice level is between the range extremes. At this point the trader makes the decision,such that he / she waits for the market to come down to the lower range extreme, andthan open a long position.

30 minutes later the marketcome down to his lower range extreme level, and he initiate theLong trade.

The mistake was, that the trader did not reevaluated the market situation / status, and because of that he / she did not realize, that the market shiftedfrom a range mode to a down-trending mode, and immediately broke down way below the position opening level.

Theconclusion is, that because of quick potential market shifts, we need to reevaluate the market condition just before our trading decision, and shouldnot rely on ouranalysis, thatwe made just 10 – 20 .. minutes before.

Though it looks simple, it is Not, tomake the distinction between Bullish / Up-trending / Bearish / Down-trendingand range markets.

There might be big differences between Bullish market, Bullish pattern and Bullish expectations or hopes, that never really turn out to be Bullish / Up-trending in our selected time-frame.

On the flowchart TF is our selectedtrading Timeframe, (In our case it is the 5 Min timeframe)but in addition to that we use one or more timeframes above that (60min, Daily, and often the 15 Min and 30 Min timeframes)and some timeframe below the trading timeframes (3Min, 1Min, 15 seconds) to fine-tune the actual trade entry.

We note here that the question to include the daily predictions into the intraday trading decision-making process might be concludedwithin the first 10 – 90 minutes after market open,sometimes as soon as inthe first 5 – 10 minutes, but most often within the first 30 – 45 minutes.(If the market gaps again the predicted direction and continue to move strongly again the predicted direction.)

The above flowcharts are only for demonstration purpose, that we use for Day-trading.Every pro-trader have either explicit or implicit trading strategythat could be depicted with a flowchart.

Some of the reasons that we need to have something like that available either explicitly or implicitly. (If a trading strategy described in other form itfulfills similar purpose.)

-Improve response time for the market moves.

-Be able to see how we are doing our job.

-Be able to findareas, that need to be improved,adjusted tohave better

overall results.

-Be able to identify our weaknesses and strength during trading

The sampletrading flowchartspresented only part of the complete market participation process, as this is only about position opening.

Similar strategy, flowcharts could be created aboutposition management / portfolio management, andexit strategies

The optimal position entry (Optimized to the minute or seconds) is crucial for a scalper or Day – trader, but much less important forthe swing trader or investor.

Some conclusions:

To be successful on the market in trading, the market participant Must be able to improve constantly.

The market participant must bequick in the decision making, especially ifthe decision is about cutting losses, and sometimes might need to be slow / patient, if the time is about letting the profits run.

The market participant must be able to adopt to market conditions, so the market status must be reevaluated periodically, andthe trader should not be locked into apreviouslycreatedview / conclusion about the market status.

To be able to improvethe trader must have market participation data (trading data) and possibly market participant data (Mental state…) available.

The feedback loop of the learning process / trader improvementclosed if we analyze our trading performance,compare to thepotentials of the strategy, played, andconstantlytry tofindareasto work on.